10 things First-Time Homebuyers Must
Buying a home is, perhaps, the single biggest purchase many people
will make in their lifetime. Before putting your John Hancock on the
30 year mortgage, check out these 10 potential pitfalls of
purchasing a home.
Whats the condition of the home? The property should be worth the
price you paid; otherwise, you are duped. You can have a real estate
assessor or an inspector help you out with that one.
Are repairs done? It will definitely cost you more if you will be
the one to shoulder on the repairs. Besides, its every home sellers responsibility to do so. Ensure that the fixes are not
only superficial. It should include defects in plumbing, heating,
and cooling systems of the home.
Are your brokers credible? Ensure that youre working with
knowledgeable and experienced mortgage and real estate brokers. Thats why you should make your own research first before you work
How much will it cost you? And were not talking about the home
price alone but everything. You will have to pay for the closing
costs, processing of the loan, and a lot more. If you dont want
to go overboard with your budget, you should know this thing.
Hows your credit report? You really dont want to mess with
your credit score, especially if youre applying for a mortgage.
It will help you obtain a very small interest rate and good payment
terms. Make sure that you can pay your other debts on time and that
you havent file bankruptcy in the last 5 to 7 years.
Whats your salary? Salary also plays a part when it comes to your
mortgage. If you have stable and decent income, you can get a better
loan conditions for yourself. If you feel like your mortgage is too
high for you even if you have a good credit score, you may want to
work on your income for a while.
How much is your interest rate? You cannot take out a loan without
interest charges, but it does vary from one mortgage company to
another. When youâ€™re looking for loan, make it one of the factors
that will determine your decision. You can also watch out for the
current interest rate in the market. Ensure that then mortgage
interest rate is not far from it.
How much can you afford? Its always best if you can take a look
at your savings account and your earnings before you decide to buy a
home. Even if you can afford the mortgage, you still have to
allocate whatever amount you have with your utilities, school plans,
insurance policies, and a lot more.
Where is the home? You may have the most beautiful house in town,
but if its too far from work, school, and other necessities, it
may defeat its purpose. However, if you want to be far away from the
hustle and bustle of the city, then its quiet location may appeal to
How much is your down payment? How much youre going to pay
initially will determine the equity you can build right away into
your house. If at all possible, pay at least 20 to 22 percent of its
total amount so you can avoid paying mortgage insurance. This one
can be quite expensive. A huge down payment can also mean an
Best Of Luck
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